Shahi Paneer Recipe (Restaurant-Style)

Learn how to make Shahi Paneer at home with this easy and creamy Indian curry recipe. Shahi Paneer is a healthy and delicious Indian veg recipe from North India. It is made with paneer, also known as Indian cottage cheese, which is cooked in a rich and creamy gravy. This dish is special because of its rich texture and delicious taste. The gravy is made with spices, nuts, and cream, which makes it very tasty, making it a perfect dish for those who eat flavorful creamy Indian curries. Whether you’re searching for how to cook restaurant-style Shahi Paneer or a healthy Indian paneer recipe for dinner, this guide gives you everything you need. 

In the original recipe, milk is optional and not always used. You can also cook Shahi Paneer without cream. Follow this step-by-step instructions to make healthy and flavorful Shahi Paneer Indian curry at home. Paneer is also commonly cooked with peas to make Matar Paneer, another similar recipe that you can try.

Ingredients and Substitutes

• Paneer (Indian cottage cheese): Paneer is the main protein ingredient and adds richness to this royal North Indian curry. I prefer fresh, homemade paneer, but store-bought works well too. You can substitute with tofu for a vegan version.
• Cooking Oil: Use any healthy oil or ghee for cooking. Ghee gives a rich, buttery flavor in Shahi Paneer. If you’re avoiding dairy, use sunflower oil, canola oil, or vegetable oil.
• Bay leaf: Adds subtle aroma to the masala base. You can skip it if unavailable, or use a small piece of Indian bay leaf (tej patta) for a more authentic touch.
• Green cardamoms: These add delicate sweetness and aroma. If you don’t have whole pods, use a pinch of ground cardamom.
• Cinnamon stick: Cinnamon brings warmth and depth. I use ¼ tsp ground cinnamon.
• Cumin seeds: Cumin gives a smoky flavor when tempered in hot oil or ghee. If you’re out, try caraway seeds (shahi jeera) a slightly different flavor or just skip it.
• Onion: Onions form the base of the shahi paneer gravy. Use yellow or red onions, or shallots for a milder taste.
• Ginger-Garlic Paste: A must for depth and savory flavor. I usually make my own fresh paste. You can use freshly grated ginger and garlic, or store-bought paste.
• Tomatoes: Tomatoes add tang and body to the gravy. I blend fresh tomatoes in a grinder to make a paste. You can also use canned tomato puree or blanched and blended tomatoes.
• Cashew nuts: These give that creamy richness Shahi Paneer is known for. If needed, substitute with blanched almonds, melon seeds, or a spoon of cream cheese blended into the curry.
• Spices for Shahi Paneer: I use turmeric powder to add color and mild earthiness. For heat and vibrant color, I use red chili powder but you can substitute it with Kashmiri chili powder for a milder version or paprika if you prefer no heat. For a subtle citrusy warmth, I add coriander powder; if it’s unavailable, a small pinch of cumin powder can be used instead. I also use garam masala powder at the end to bring warmth and fragrance. If you don’t have it, a mix of clove, cinnamon, and cumin powder can work as a substitute.
• Salt: I typically use regular salt but sometimes add pink salt pink Himalayan salt for added minerals.
• Fresh Milk Cream: Cream is a key ingredient in Shahi Paneer that makes creamy shahi texture. You can also blend extra cashews or stir in malai (milk cream) from boiled milk. For a vegan version, cashew cream or coconut cream.
• Milk (optional): Sometimes I add milk to adjust the gravy’s consistency. You can use plant-based milk (unsweetened almond or cashew milk) if you prefer dairy-free version.
• Dried Fenugreek Leaves: Adds a signature restaurant-style shahi paneer aroma. If unavailable, I skip it or use a tiny pinch of celery seed powder for an earthy note.
• Coriander Leaves: Finish the dish with fresh coriander, it gives a pop of color and freshness. You can also use mint leaves or skip if you prefer a cleaner finish.
• Silvered Almonds (optional): Used for garnish in festive or restaurant-style plating. I add these when serving guests or for festive meals You can also garnish with toasted cashews, raisins.

Shahi Paneer Recipe Instructions

Fry the Paneer

1. Cut 200g fresh paneer into cubes. Lightly fry the paneer cubes in 1–2 tablespoons of ghee or oil in a non-stick heavy-bottomed pan over medium heat until golden at the edges. Remove from pan and set aside.

Be careful not to over-fry the paneer, just enough to firm them up while keeping the inside soft.

Sauté Whole Spices and Nuts

2. Heat 2 tablespoons ghee or oil in the same pan over medium heat. Add the following whole spices and nuts:

• 1 teaspoon cumin seeds
• 1 bay leaf
• 2–3 green cardamom pods
• 1 small stick of cinnamon
• 12–15 cashew nuts

Sauté for a few seconds until the spices turn aromatic. Lightly roast the nuts until they start to turn golden. This adds a creamy, rich flavor to the shahi paneer gravy.

3. Add onion and tomatoes to the pan. Cook for 5-7 minutes, stirring occasionally, until the oil separates from the masala.

4. Add 1 tablespoon ginger-garlic paste to the pan. Mix and cover the pan with a lid and cook for 7-8 minutes on medium flame, or until the raw smell of the ginger-garlic paste disappears.

5. When the tomatoes are fully softened and the mixture is slightly cooled, it’s ready to blend.

6. Blend everything to make a smooth Shahi Paneer gravy paste. You can add a little water if needed to help achieve the right consistency.

Temper the Ground Spices

7. Take a clean pan and heat 2 tablespoons oil and add the following spices:

• ½ teaspoon turmeric powder
• 1 teaspoon red chili powder
• Salt to taste

Stir well to mix the spices with the oil. Sauté for a few seconds to release their color and aroma, enhancing the flavor of your Shahi Paneer curry base.

8. Add the prepared Shahi Paneer masala paste to the pan. Stir in 1 teaspoon coriander powder and salt to taste. Mix well and let the masala cook for a few minutes over medium heat.

Add Paneer

9. Gently add the paneer cubes in pan, taking care not to break the them, and mix well.

If you’d like to enhance the flavor, fry the Indian cottage cheese cubes in butter for a few minutes until the edges turn golden brown.

Cook the Shahi Paneer

10. If using, pour in ½ cup of milk to create a rich, restaurant-style Shahi Paneer gravy. Then add the final flavor enhancers to bring everything together:

• ¼ cup fresh cream
• ½ teaspoon garam masala
• 1 teaspoon crushed kasuri methi (dried fenugreek leaves)

Stir well to combine the creamy elements and spices evenly.

11. Let the curry simmer on low heat for 2–3 minutes. After simmering, the Shahi Paneer gravy will thicken and develop a rich, restaurant-style creamy texture, as shown in the image below.

Garnish and Serve

12. Turn off the heat and drizzle some cream over the top of the Shahi Paneer. Garnish with fresh coriander leaves and slivered almonds. Serve hot with roti, butter naan, or jeera rice.

Serving Suggestions for Shahi Paneer

• Serve Shahi Paneer with butter naan or garlic naan for an indulgent restaurant-style experience. For a healthier option, pair it with whole wheat roti or soft phulkas.
• Include Shahi Paneer as the star Indian curry in a thali with dal, sabzi, salad, raita, and chapati for a complete and royal vegetarian platter.
• Serve with onion rings, lemon wedges, and green chutney on the side. Add a bowl of boondi raita or cucumber raita to balance the richness.
• You can add Cashew Paste in Shahi Paneer. Cashew paste creates a creamy, nutty flavor, making the gravy rich and luxurious. Ground almonds also give the gravy a subtle sweetness and smooth texture.
• You can add Yogurt in Shahi Paneer. Yogurt replaces cream for a tangy, lighter, and healthier version of the dish.
• Add cream and ghee in this paneer dish. Fresh cream and ghee make the dish richer, offering a smooth, indulgent texture. You can also add Coconut milk, it gives a dairy-free, lighter, tropical flavor

FAQ

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